Aytu BioScience Provides Fiscal Fourth Quarter and Year-End 2017 Business Update Live Conference Call and Webcast Today at 10:30 a.m. ET Englewood, CO

Aytu BioScience Provides Fiscal Fourth Quarter and Year-End

2017 Business Update

Live Conference Call and Webcast Today at 10:30 a.m. ET

Englewood, CO - August 31, 2017 - Aytu BioScience,

Inc. (OTCQX: AYTUD), a specialty life sciences company focused on global commercialization of novel products in the field

of urology, today provided an overview of its business, including the Company's operational and financial accomplishments

for its 2017 fiscal year. The Company will host a live conference call and webcast today at 10:30 a.m. ET. Details are provided

at the end of this press release.

Fiscal 2017 Corporate Highlights:

Fiscal 2017 Financial Highlights:

"Fiscal 2017 was a fundamentally strong year for Aytu as

we have begun to establish ourselves as a leading commercial-stage urology company," stated Josh Disbrow, Chairman and Chief

Executive Officer of Aytu. "The addition of Natesto in early fiscal 2017 to the Aytu portfolio has transformed the Company

as Natesto has the potential to become a significant product in the $2 billion testosterone replacement therapy (TRT) market.

Natesto is highly differentiated from other TRTs given its unique delivery, established efficacy, and improved safety profile,

and we believe we are beginning to realize Natesto's substantial commercial potential. Our sales force is still in the early

stages of establishing Natesto with their physician customers, and now, having consistently eclipsed 150 prescriptions per week,

we believe that the recent prescription trend is just the beginning of establishing Natesto as the new standard for the millions

of men with hypogonadism. Over the past year since acquiring and re-launching Natesto in the U.S. we have successfully rolled

out our nationwide sales force targeting the highest prescribing physicians of testosterone replacement therapies. Prescriptions

have grown 98% since last quarter and have achieved an average monthly growth rate of 40% over the fourth quarter. Additionally,

MiOXSYS and Fiera are becoming meaningful products for the Company as we continue our rollout of MiOXSYS outside the U.S., and

have begun the process of integrating Fiera into our portfolio. MiOXSYS instrument placements more than doubled from the first

half to the second half of fiscal 2017 overseas, and we have now placed MiOXSYS in 20 countries around the world. Given these

commercial developments, we are now well positioned going forward, and expect to be at a revenue run-rate to achieve profitability

in the next twelve months. Additionally, with the closing of our recent $11.8M private placement, we believe we have adequate

cash to operate into the middle of fiscal 2019 and to achieve cashflow breakeven. The Company is well capitalized with substantial

cash on the balance sheet, has demonstrated consistent month to month prescription and factory sales growth of Natesto, and has

demonstrated that both MiOXSYS and Fiera stand to become meaningful revenue-generating products for the Company as part of our

unique, commercial-stage urology portfolio."

Natesto is the only FDA-approved nasally-delivered TRT, and Aytu

has the exclusive U.S. license to Natesto through the term of the product's extensive patent portfolio. Due to its unique

intranasal delivery, Natesto has an efficacy and safety profile that is fundamentally different than all other TRTs. The Company

and its licensing partner, Acerus Pharmaceuticals, have presented new data in the last year that is helping to establish Natesto

as an important new treatment option for the 13 million American men that are diagnosed with low testosterone.

While Natesto is the Company's lead product, Aytu remains

committed to establishing MiOXSYS as novel and important diagnostic for the millions of men worldwide faced with male factor infertility.

In the past year Aytu, along with the Company's clinical collaborators, has published and presented compelling new clinical

data to strengthen the body of evidence supporting the important role of MiOXSYS in the diagnosis and management of infertility.

In fiscal 2017 the Company's collaborators published two peer-reviewed articles and made twelve presentations at major scientific

conferences around the world. Additionally, in fiscal 2017 the Company added nine new distributors for MiOXSYS bringing the Company's

international distribution network to 19 companies, achieving instrument sales in 20 countries.

On May 9th, the Company announced the acquisition of

Nuelle, Inc. in an all-stock transaction. The acquisition of Nuelle and the on-market product, Fiera, enables Aytu to expand into

an adjacent and complementary therapeutic area in female sexual wellness. Additionally, the Company believes Fiera serves to complement

our Natesto efforts while adding another unique product that can be efficiently commercialized through our established U.S. sales

force. Fiera serves a large and growing need in female sexual health and is positioned to help many of the 44% of women worldwide

who report a sexual problem. With this transaction, Aytu also received approximately $600,000 in cash, $1 million in inventory,

and several prominent healthcare institutional investors, inclusive of venture capital firm New Enterprise Associates.

ProstaScint remains an important portfolio product

for the Company given its revenue contribution and its role in the screening and staging of prostate cancer, despite the fact

that minimal promotional effort is expended on this product.

On April 3rd, the Company announced that it had entered

into an agreement with Allegis Holdings to divest Primsol (trimethoprim) Solution. This was a strategic transaction

given that Primsol was not a core promotional product, and that the transaction provided non-dilutive capital that has been deployed

toward the commercialization of the Company's core products.

Net product revenue for fiscal 2017 was $3.2 million, which was

related to sales of ProstaScint, Primsol (through March), sales of MiOXSYS and minimal initial wholesaler sales of Natesto. This

represents a product revenue growth rate of 57% over fiscal 2016. Fiera contributed minimally to fiscal 2017 revenue but is expected

to contribute meaningful revenue in fiscal 2018. We expect the majority of 2018 revenue to be driven from Natesto sales with revenue

contributions from sales of MiOXSYS (outside of the U.S.) and revenues from Fiera sales. Revenues will be generated from ProstaScint

sales, but the Company expects ProstaScint proportional sales contributions to diminish over the next 12 to 18 months.

On August 15th, the Company announced the closing of

a private placement of equity units, which resulted in gross proceeds of $11.8 million, before deducting fees. With this infusion

of capital, the Company believes that it has adequate financial resources to adequately fund operations through the middle of

fiscal 2019 and enables the Company to achieve cashflow breakeven.

On August 25th, the Company announced that a previously

approved 1-for-20 reverse split of its outstanding shares of common stock was effected, and trading commenced on a post-split

basis on Tuesday, August 29th. The stock split is intended to increase the per share trading price of the Company's

common stock to enable the Company to satisfy the minimum bid price requirement for a planned listing on a senior exchange. The

Company's trading symbol is temporarily changed to "AYTUD" for a period of twenty business days, which began

on August 29th. After this period the symbol will revert to the original symbol of "AYTU."

Conference Call Information:

The live conference call and webcast will begin today 10:30 a.m.

Eastern Time. Interested participants and investors may access the conference call by dialing either:

The webcast will be accessible live and archived on Aytu's

website, http://aytubio.com, for 90 days.

A replay of the call will be available for seven days. Access the

replay by calling 1 (877) 344-7529 (U.S.) or 1 (412) 317-0088 (international) and using the replay access code 10111805.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty life sciences company

focused on global commercialization of novel products in the field of urology, with a focus on products addressing vitality, sexual

wellness, and reproductive health. The Company currently markets two prescription products in the U.S.: Natesto ,

the first and only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T")

and ProstaScint (capromab pendetide), the only FDA-approved imaging agent specific to prostate specific membrane

antigen (PSMA) for prostate cancer detection and staging. Additionally, Aytu is developing MiOXSYS , a novel, rapid

semen analysis system with the potential to become a standard of care for the diagnosis and management of male infertility caused

by oxidative stress. MiOXSYS is commercialized outside the U.S. where it is a CE Marked, Health Canada cleared

product, and Aytu is planning U.S.-based clinical trials in pursuit of 510k medical device clearance by the FDA. Aytu's

strategy is to continue building its portfolio of revenue-generating products, leveraging its focused commercial team and expertise

to build leading brands within growing markets. For more information visit aytubio.com. Aytu also has a wholly-owned subsidiary

Aytu Women's Health (formerly Nuelle, Inc.), a personal health and wellness company focused on women's sexual wellbeing

and intimacy. Aytu Women's Health markets Fiera, a personal care device for women that is scientifically proven to enhance

physical arousal and sexual desire. Fiera is a consumer device and is not intended to treat, mitigate, or cure any disease or

Forward-Looking Statements

This press release includes forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the

Exchange Act. All statements other than statements of historical facts contained in this presentation, including statements regarding

our anticipated future clinical and regulatory events, future financial position, business strategy and plans and objectives of

management for future operations, are forward-looking statements. Forward looking statements are generally written in the future